EghtesadOnline: Insurance companies are facing restrictions for transferring risk to foreign reinsurance companies, though talks are underway with reinsurance companies in Azerbaijan, Russia and Syria, according to Mostafa Kiaei, CEO of Amin Reinsurance Company.

"Approximately $500 billion of country's resources are covered by insurance," he told a press conference, adding that "insurance companies need to transfer the risk outside the country," IRNA reported.

Kiaei said talks have been held with two Azeri insurance companies, saying that their representatives are to visit Tehran for further negotiations, Financial Tribune reported.

Amin Re representatives reportedly held talks with Pasha Insurance and AZRE’s officials last week in Baku, the company's website reported.

Kiaei added that a Russian firm is also discussing ties with Amin Re. "We started collaboration last year and expected expansion of ties in the coming year."

New US sanctions and major reinsurance companies' aversion to play their role has deprived the country of the ability to transfer major risks outside its borders and to top international players in the key sector.

Currently, two reinsurance companies operate in the local market, namely Amin Re and Iranian Re. A limited number of insurance firms have received permits from the regulator to offer reinsurance cover. Experts say loopholes and poor regulations are depriving the reinsurance industry from playing its role.

Amin Reinsurance Company and Iranian Reinsurance Company can provide reinsurance cover up to 914.9 billion rials and 620.62 billion rials, respectively.

Some Iranian insurance companies signed deals with major international peers following the lifting of economic sanctions in 2016. Saman Insurance Company's agreement with Munich Re, Mellat Insurance Company and Central Insurance of Iran's deals with SCOR RE are two examples.

However, the agreements were suspended or cancelled as a result of the Donald Trump’s decision in 2018 to pull the US out of the landmark nuclear deal Iran signed with the six world powers in 2015.